Century Properties Group, Inc., is expecting its ongoing expansion and diversification efforts to pay off in the next two years and allow it to even double its value from the current P14.63 billion.
Century Properties is poised to deliver 31 residential condominium projects in Metro Manila by 2020, comprising 18,000 units and 1.34 million square meters of gross floor area.
Its high-rise residential developments coupled with the company’s ventures into office leasing, retail leasing, and tourism and hospitality is poised to drive the company’s growth, noted Antonio.
“It’s just a matter of timing because these four legs of our business, if all of these falls into place, we’re seeing a bigger company in the next couple of years,” said Century Properties Chairman Jose EB Antonio.
He added that, “the way we look at it, we will have a four-legged table. Our vertical and then we have our recurring income portfolio which will be office and retail. Then we will have our economic housing, which is the third leg. Then we will have leisure and tourism. We don’t rely on one segment for profitability.”
In line with its Century 2020 blueprint, the company said it is proceeding to diversify into horizontal economic housing to create subdivisions located in high growth areas, as well as leisure and tourism projects.
Century Properties is planning to spend between P1 billion and P2 billion for its first economic housing development. It plans to initially launch projects in areas around Metro Manila.
“Our basic model is we buy at least 10 hectares,” said Antonio, noting that their first horizontal housing project will have an average area of 40 square meters per unit and priced at P1 million to P1.5 million each.
Antonio said “we are currently pursuing more fervently new projects in the economic housing space. We will proceed with the same amount of prudence, opportunism, and progressive mentality that we have always employed.”
He added that “we will deliver projects that are expected to offer reliable returns in reasonable payback periods. These and a few other initiatives will steer the company towards long-term growth and profitability, which can ride the peaks and troughs of real estate cycles.”
Century is also on track with its foray into retail, office and medical facilities for recurring income. For its leasing portfolio, the company expects to have roughly 300,000 square meters of gross floor area by 2020.
Source: Manila Bulletin | July 22, 2016